As if returning to work after a holiday break (or at least a holiday lull) wasn’t grim enough, nearly every worker in America faces a tax increase.
This means you, PR and marketing pros.
The Senate bill to avert the so-called fiscal cliff, which the House passed on Tuesday, fails to prevent the expiration of payroll tax cuts enacted in 2011. As a result, an American household earning $50,000 will pay roughly $1,000 in additional taxes.
(The Wall Street Journal
has a calculator
that reveals how much you’ll pay based on your annual pretax earnings.)
The Associated Press
, citing the non-partisan research group The Tax Policy Center, said “the increase in payroll taxes will hit nearly every wage earner.”
President Obama on Tuesday night said the bill to avoid the so-called fiscal cliff prevents a middle-class tax hike; he also insisted that middle-class families “will not see their income taxes go up.” As The New Yorker
points out: “That is false, unless one goes along with the idea—and most of Washington does—that payroll taxes, which are on income and levied by the federal government, are not federal income taxes.”
Meanwhile, the heaviest tax burdens will fall on top earners. A key part of the deal reached by Congress allows Bush-era tax cuts to expire for individuals making more than $400,000 and families earning more than $450,000. According to Bloomberg
, “the top 1 percent of taxpayers, or those with incomes over $506,210, would pay an average of $73,633 more in taxes.”